One of the most frightening things about filing for bankruptcy is the potential for your assets to end up liquidated by the courts to pay your debts. For those with lower incomes, who pass the state means test, Chapter 7 bankruptcy can offer relief from unsecured debts, including credit card debt and medical debts. However, the courts will look at your assets to see if you have the ability to repay some of those debts before granting a discharge.
One of the chief advantages of filing for Chapter 7 bankruptcy is that it allows you to discharge certain debts. For example, it is often possible to extricate yourself from debts owed on a credit card. Also, there are circumstances in which you can even get some tax debts discharged.
If your debts have grown to the point where it's impossible for you to ever regain financial solvency, it may be time to seriously consider the advantages of filing for Chapter 7 bankruptcy. Qualifiers for Chapter 7 are able to get many of their debts dismissed while also having other processes, such as foreclosure, halted while getting their finances in order.
You have likely heard that one of the most attractive benefits of Chapter 7 bankruptcy is the ability to discharge debts that you are not in the position to pay off. By doing this, you can step out of the shadow of economic distress and into the light of a fresh financial start. But if you are considering filing for Chapter 7 for the purpose of having debts discharged, there are some things you need to understand.
Sometimes it is the fear of the unknown that keeps us from pursuing a course that is going to serve us well in the long run. And there is nothing that can provide more uncertainty than having severe financial challenges. When such is the case, it can be in your best interests to seek a fresh financial start by filing for Chapter 7 bankruptcy.
No one is immune from experiencing financial struggles. In fact, sometimes such troubles are visited upon very successful and hard working people. This is not surprising because successful people often accrue large amounts of wealth that they use for their investments. Unfortunately, sometimes investments don't work out, even for those who have a history of accomplishment.
When dealing with your personal finances, you have two major considerations. First, you must be aware of your present needs and budget yourself accordingly. But you also must keep an eye on the future, and prepare for your retirement. And the present and the future are not mutually exclusive. Your current financial situation will dictate how much you can put into your retirement funds.
Even if you are financially responsible and do all you can to keep your debt level manageable, sometimes situations arise that are simply beyond your control. And anyone can fall victim to an injury, illness or serious medical condition. Such events often require hospitalization and treatment. And it is no secret that receiving medical attention can be an extremely expensive proposition.
If you are struggling with debt that is making it impossible for you to live the life you want, then you should not be afraid to consider Chapter 7 bankruptcy. For many people, bankruptcy is a frightening word that indicates failure or ineptitude, but for those who have gotten a fresh financial start with a successful bankruptcy filing, they know that bankruptcy actually indicates financial freedom and stress-relief.